Why Have the BRICs Underperformed Other Emerging Markets?

While the path has not always been smooth, non-BRIC countries such as the Philippines, Peru, Indonesia, Egypt and Thailand have delivered over the past decade

T. Rowe Price 1 June, 2015 | 3:43PM

Morningstar's "Perspectives" series features investment insights from selected third-party contributors. Here Scott Berg, portfolio manager of the T. Rowe Price Global Growth Equity Fund discusses emerging markets.

Whether looking at absolute or relative returns, economic growth figures or delivered earnings growth, many emerging market index statistics over the past few years have made for painful viewing.

However, it is important to note that the nature of index construction has played a big role in how disappointing the picture has been for emerging markets. This is because much of the pain felt by investors has centred on the largest markets, most notably the BRICs (Brazil, Russia, India, China), reversing the powerful trend of steady and consistent outperformance that followed the Asian and Russian financial crises in 1997- 98, but largely ended as the global economy collapsed in 2008.

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T. Rowe Price  T. Rowe Price is a global investment management firm dedicated to helping clients achieve long term success.

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